How US Fed’s rate cut will impact India & will the RBI follow suit

The US Fed has finally embarked on a rate cut cycle. Will this hurt or help India, and how? And will the RBI follow this example? Economist Radhika Pandey and Deputy Editor TCA Sharad Raghavan discuss these questions and more in #MacroSutra.
0.40 - Was a 50 bps rate cut by the US Fed a surprise?
3.31 - What’s behind the reversal in the US’ interest rate policy?
6.07 - The impact on India from the US Fed rate cut
10.20 - Should the RBI follow the US Fed’s example?
14.41 - Impact of past instances of US Fed rate cuts
16.42 - Factors RBI looks at when deciding interest rates
19.15 - The possibility of more rate cuts by the US Fed
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[@jainvandit]

This is perhaps (one of) the best shows in ‘Macroeconomic’ niche in India. The way Dr Radhika succinctly puts up the facts and analysis is immaculate. No nonsense, pure fact based analysis. Dearth of such content in today’s media. Thank you The Print for having her!

[@blankjohnson6934]

India is in a long term is hiking taxes and tax collections whereas US is lowering taxes, could you please ask Ms. Pandey what consequences this would have long term on currency and markets.

[@sureshdk7425]

Banks should withdraw it's investments in stock market specifically SBI stake in YES BANK which is hundreds of crores therby reduced recipt of F. D's, are set off to some extent.

[@TILAKRAJCHAUDHRY]

very informative

[@Punch8721]

Why do Indian banks have difficulty in attracting savings deposits? is it because people cannot save much from income?

[@Naruto-Uchiha724]

I think its due to low intrests provided by the bank and high inflation rates turning people away from banks toward the stock markets

[@mady5647]

It seems people expect better returns than bank-deposits, which equities, other debt instruments offer.

[@Bulldozz1-1]

Because equities have been providing consistently 12%+ and people don’t think of equity as ‘risky’ investments anymore

[@rajasingammuthusamy959]

If India follows US federal rate cuts, it can raise the inflation rate and cause the value of Indian currency to drop against the dollar.

[@nitinpatel1039]

Stock market will hot 90k in few weeks with this major cut, their will be further cut due to continuous growth slowdown

[@prashanthb6521]

These rate cuts wont rescue us from recession.

[@rachitbisht6128]

Bro do you even know the meaning of recession as we had 6.7%QoQ growth which might be low but nowhere near recession mainly due to lower gov spending.

[@rajx7120]

The only thing that can cause recession is, if stupid policies like newer reservations are implemented, and cost of electricity and petrol is increased to fund freebies.

[@prashanthb6521]

@@rachitbisht6128 Dude, those are superficial details which doesnt matter much. There are deeper economics which you dont seem to know. So stop acting like you know stuff, I have enough experience in this.

[@prashanthb6521]

@@rajx7120 And Modi's reservation for the select few is very good for India ? BTW recession is already under your nose even if you want to live in delusion. Again I dont want to argue with immatures who dont know the subject.

[@rajx7120]

​@@prashanthb6521 Lol! What reservation did Modi give? Oh, you are those Adani Ambani conspiracy theorists, are you? You guys don't mind, when Congress gives projects to them. And I guess you are also, those who deliberately mislead between loan waiver and loan write-offs, and don't question the UPA, which hid bad loans in the first place. India's economy is picking up. If you don't get a job, then you were probably not qualified to begin with.